Willdale’s strong performance continues
Willdale says its sales volume for the three months to June 30, 2021 grew by 33 percent compared to the same period in the prior year.
For the six months to June 30, 2021, the sales volumes were 30 percent above prior year, the company said in a trading update signed by the firm’s secretary Mr Mavuto Munginga.
The ZSE-listed company said demand for bricks remains relatively high driven by housing development and infrastructure projects.
The strong sales volume performance and “effective pricing” saw revenues grow by 34 percent compared to the same period in the prior year in “hyperinflation terms”.
Revenue growth is expected to remain positive to year end, according to the trading update for the three months to June 30, 2021.
However, the Covid-19 pandemic and electricity load shedding continued to impact on operations during the period under review.
In the outlook, Willdale expects ongoing construction of housing units in the market “to continue to drive volumes towards a profitable year”.
“We are encouraged by the declining inflation rate and a stable exchange rate which should improve the operating environment,” reads part of the trading update.
On business continuity, Mr Munginga said targeted plant utilisation levels will be achieved provided electricity load shedding is kept at reasonable levels.
He, however, added that the business is solvent and has sufficient resources to continue operating as a going concern in the fore-seeable future.
“Working capital is being generated from available inventory and credit facilities.”
On the impact of Covid-19, Munginga said the pandemic continued to determine the way of doing business in the quarter under review. – www.ebusinessweekly.co.zw
